Krungsri Bank projects profit of 3.17 billion baht in 68, a 6.9% increase, recognizing extraordinary gains from TIDLOR.

Krungsri Bank reports a projected profit of 3.17 billion baht in 68, a 6.9% increase, primarily driven by extraordinary gains from TIDLOR and higher fee income.

January 20, 2569 – Krungsri (Bank of Ayudhya Limited (Public Company) and its subsidiaries) The financial results report for 2568 shows a net profit of THB 31.74 billion, an increase of 6.9% from the previous year. This is primarily driven by extraordinary gains from the fair value adjustment of investments in Tidlor Holdings Public Company Limited (TIDLOR), an increase in non-interest income, and net interest income from efficient management of liquidity and financial costs.

Mr. Kenichi Yamato, President and Chief Executive Officer Bank of Ayudhya Public Company Limited Amid the increasingly challenging business environment, Krungsri implemented a quality growth strategy in 2568 to maintain asset quality, resulting in loan growth of 1.7% from 2567. This growth was primarily driven by a 2.7% increase in large corporate loans. Furthermore, loan expansion also resulted from the consolidation of TIDLOR's loan portfolio. Meanwhile, weak domestic demand and declining business confidence led to a contraction in loans to small and medium-sized enterprises (SMEs) and retail borrowers.

Summary of key operating results and financial status for 2568

• Net profit in 2568 is projected at 31,739 million baht, an increase of 6.9% or 2,039 million baht from 2567. This is primarily driven by extraordinary gains from the fair value adjustment of investments in Tidlor Holdings Public Company Limited (TIDLOR), an increase in non-interest income, and net interest income from efficient management of liquidity and financial costs, as well as the consolidation of TIDLOR's loan portfolio.
The second half of the year

• Total loans increased by 1.7%, or 32,779 million baht, from the end of December 2567, driven by retail loans resulting from the consolidation of TIDLOR's financial statements, coupled with growth in large corporate loans, while loans to medium and small enterprises decreased.

• Deposits decreased by 4.8%, or 86,901 million baht, from the end of December 2567, primarily due to a decline in fixed deposits. This reflects proactive liquidity and cost management amidst low loan growth.

• The net interest margin (NIM) increased to 4.35% from 4.28% in the previous year, resulting from the bank's continued proactive management of financing costs, coupled with the integration of the high-yielding loan portfolio from TIDLOR in the second half of 2568, even though overall loan demand is expected to weaken.

• Non-interest income increased by 14.1% or 6,402 million baht from 2567, primarily driven by increases in fee and service income, extraordinary gains from fair value adjustments of investments in TIDLOR, net gains from financial instruments measured at fair value through profit or loss, and recovered bad debts.

• The expense-to-income ratio is 47.0%.

• The non-performing loan (NPL) ratio stood at 3.26%, compared to 3.23% at the end of December 2567. The loan loss reserve ratio stood at 227 basis points, reflecting prudent risk management, resulting in a loan loss reserve ratio of 126.9%.

• The bank's capital adequacy ratio (to risk-weighted assets) was 20.69%, compared to 19.38%.
At the end of December 2567

“Amid increasing economic challenges across the board, Krungsri remains committed to its key strategies for this year, focusing on continued prudent asset and financing management, enhancing operational efficiency, and prudent risk management. Furthermore, the bank continues to provide assistance to vulnerable customer groups affected by the underdeveloped economic environment.”

Mr. Kenichi commented on the economic outlook, stating that the economy is expected to grow by approximately 1.8% in 2569.
Below potential and down from 2.1% in the previous year, reflecting cyclical and other challenging factors.
Structurally, consumption is likely to slow due to weak income growth, while exports face pressure from US tariffs and the appreciation of the Thai baht.

However, the tourism sector and private investment will continue to drive the economy, driven by a projected 35.5 million foreign tourists and support from foreign direct investment (FDI). Overall, the Thai economy remains sluggish, constrained by trade protectionist measures and weak domestic spending.

As of December 31, 2568, Krungsri, the fifth-largest financial conglomerate in the Thai economy by asset value, Loans and deposits It is one of the systemically important financial institutions (D-SIBs) with total loans of 1.93 trillion baht, deposits of 1.74 trillion baht, and total assets of 2.65 trillion baht, while the bank's capital is at a strong level of 336.60. Billion baht or equivalent to 20.69% of risk-weighted assets. It is 1% of the owner's equity tier 16.41 capital.

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